Two Mutually Exclusive Projects Have the Following NPVs and Project

Multiple Choice

Two mutually exclusive projects have the following NPVs and project lives.
$$\begin{array} { r r c } \text { Project } & \text { NPV } & \text { Life } \\\text { Project A } & \$ 5,000 & \text { 3 years } \\\text { Project B } & \$ 6,500 & 5 \text { years }\end{array}$$
If the cost of capital is 15%, which project would you accept?

A) A
B) B
C) Both A and B
D) Reject both A and B